Silver Plunges Over 50% From Record Highs as Fed Tightening Fears Mount
Silver has tumbled more than 50% from its all-time highs as hawkish Fed expectations boost real yields and the US dollar, pressuring precious metals.
Silver prices have collapsed more than 50% from their all-time highs, extending a sharp decline as hawkish Federal Reserve expectations continue to boost real yields and the US dollar. The sell-off accelerated after the Fed's latest policy meeting, which surprised markets with a projection of a rate hike this year, contrary to the consensus expectation of no change.
The precious metal has been under relentless pressure since the Federal Open Market Committee (FOMC) delivered a hawkish surprise, projecting a rate hike in 2026. Markets have since priced in 37 basis points of tightening by year-end, with a 34% probability of a hike as early as July and a 68% chance by September. This shift in rate expectations has pushed real yields higher and strengthened the US dollar, both of which are traditionally negative for non-yielding assets like silver. The metal has fallen more than 50% from its record highs, with no meaningful catalysts to reverse the trend since the FOMC decision. For traders tracking the move, NowPrice's fx page offers real-time pricing on silver and related currency pairs to monitor current levels.
Looking ahead, the direction of silver will likely hinge on incoming economic data and financial market conditions, which will guide the Fed's next steps. Key releases such as US employment reports, inflation data, and consumer spending figures will be closely watched for any signs that could alter the rate path. If data continues to support the hawkish narrative, further downside in silver and other precious metals could be expected. Conversely, any softening in economic indicators might ease tightening fears and provide a temporary reprieve for the metal. Traders should also monitor real yield movements and dollar index levels for short-term cues.